Should Retirement Plan Sponsors Match Student Loan Repayments?

Matching contributions for qualified student loan payments (QSLPs) are a new option available for use in any 401(k), 403(b), government 457(b), and SIMPLE IRA plan. Under this alternative feature, a plan sponsor may choose to treat an employee's qualified student loan payments as an elective deferral and make matching contributions to the retirement plan based on those loan payments. This design opportunity is optional, and it offers employers the choice to support employees with student loan debt in a unique way. The prospect of designing a plan to match student loan repayments offers both advantages and disadvantages for plan sponsors. The question that needs to be answered is whether your clients should amend their plan to adopt this new idea. [ABSTRACT FROM AUTHOR]